Does the end of free music streaming start here?
Uh-oh... The first of the music giants is to stop licensing its songs to online streaming services.
Warner Music said today that such services were "clearly not positive for the industry." Sites like Spotify and Last.fm have revolutionised online listening. This move from Warner - one of the big four alongside Sony BMG, Polygram and Universal - raises questions over the future of free streaming.
Spotify has seven million users in six European countries and is poised to launch in the US. 95% of users get it for free, tolerating the adverts. 250,000 pay a subscription to get it advert free and on their mobile.
According to Warner Chief Exec Edgar Bronfman Jr, the label are aiming to promote streaming sercvices which require payment - saying that "the number of potential subscribers dwarfs the number of people who are actually purchasing music on itunes."
The theory goes that potential subscribers are anyone who has a computer - most of whom are not regular buyers of music online. This massive target audience would be far more profitable than per-track downlaods in the long run.
LC
Source: BBC News.
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